I understand the weight you carry—the burden of debt pressing down on your shoulders. It’s like a relentless storm cloud, casting shadows over your every move. But take heart, for there is a way out. In this blog post, we’ll delve into the hard truths about obtaining a loan while under debt review in South Africa. Buckle up because knowledge is your lifeline.

The Harsh Truth

When you’re under debt review, getting a loan in South Africa is not legal. This is because a court order protects you from creditors and prevents them from taking legal action against you. Taking out a new loan during this time would violate this protective shield and result in legal consequences.

Lenders are also wary of lending money to individuals under debt review since they know the risks involved. Imagine a leaky boat; adding more weight (debt) while it’s already sinking won’t keep you afloat. Applying for a loan triggers credit checks, which negatively affect your credit score. A lower score makes future borrowing even more challenging.

Why You Should Not Get A Loan Under Debt Review

Although illegal, some organisations and individuals still offer loans to people under debt review. However, it’s important to remember that this is a bad idea with serious consequences. Violating the court order can lead to legal penalties, potentially resulting in a courtroom showdown that you definitely want to avoid. Additionally, these loans come with astronomical interest rates, which can make it challenging to pay off. Essentially, the lenders are like hungry lions eyeing their prey – they view desperate borrowers as easy targets.

Moreover, borrowing more money while under debt review only digs a deeper hole. It doesn’t solve the problem; it just postpones the inevitable reckoning. This can lead to anxiety, stress, and sleepless nights – not a fun experience for anyone. It’s important to remember that getting a loan under debt review is not a solution to your financial problems.

What You Should Do Instead

If you’re feeling overwhelmed by your debt, it’s important to remember that taking out more loans isn’t the solution. Instead, focus on the debt review process and stick to your repayment plan. Just like climbing a mountain, it’s one step at a time. Keep making payments as per your debt review agreement and budget wisely by cutting unnecessary expenses. Every rand counts. Financial literacy is also important. Educate yourself on managing money, investments, and savings. Knowledge is power.

If you’re unhappy with your current debt management company, consider reaching out to Debtco Group. We helped thousands of South Africans become debt-free, and their expertise can be your lifeline. Don’t hesitate to contact us for assistance. By taking the path of wisdom and making wiser financial decisions, you can pave the way towards a debt-free horizon. So, don’t give up hope; you’re not alone. Let Debtco Group guide you towards financial freedom.